1. Business Law Knowing About the Law Chapter 1

2. What You’ll Learn How ethical decisions are made How ethical decisions are made How ethics and law differ How ethics and law differ The relationship between ethics and the law The relationship between ethics and the law Explain the importance of law Explain the importance of law How ethics and the law sometimes conflict How ethics and the law sometimes conflict

3. Relevancy to Real Life Business law has the potential value and interest for everyone since it affects each of us on a daily basis. Business law has the potential value and interest for everyone since it affects each of us on a daily basis.

4. What it Really Costs! ¾ of ALL small business owners are concerned they will be targeted by frivolous or unfair lawsuits. ¾ of ALL small business owners are concerned they will be targeted by frivolous or unfair lawsuits. Small business paid $195.4 billion in tort liability costs in 2013 Small business paid $195.4 billion in tort liability costs in 2013 Growth in U.S. torts costs increased by 9% in 2013 Growth in U.S. torts costs increased by 9% in 2013 American’s civil justice system costs $254.7 billion or 1.66% of GDP American’s civil justice system costs $254.7 billion or 1.66% of GDP Tort costs were $838 per person in 2012, meaning a four person family paid $3,352 Tort costs were $838 per person in 2012, meaning a four person family paid $3,352

5. Your view of the legal system… Family Experiences Family Experiences Disagreements where you thought your rights were violated Disagreements where you thought your rights were violated Personal Experiences involving law enforcement Personal Experiences involving law enforcement Frivolous law suits Frivolous law suits McDonald’s case McDonald’s case

9. Video Moment Stella Leibeck vs. McDonald’s Sparked huge debate over tort reform WHY? Read the Handout! Get Ready to Discuss the Case!

11. The Opening Scene, pg. 5 Starting in this chapter you will meet Jamila and Trai, who attend New Hope High School. They are having a discussion in their sixth-period law class, taught by Mrs. Ovelia Martinez. Starting in this chapter you will meet Jamila and Trai, who attend New Hope High School. They are having a discussion in their sixth-period law class, taught by Mrs. Ovelia Martinez.

12. Terms and Definitions Morality-involves the values that govern a society’s attitude toward right and wrong. Morality-involves the values that govern a society’s attitude toward right and wrong.

13. Terms and Definitions Ethics- are the means for determining what a society’s values ought to be. Ethics- are the means for determining what a society’s values ought to be.

14. How Ethical Decisions are Made Feelings and Opinions The Greatest Good The Golden Rule Ethical Character Traits

15. How Ethical Decisions are Made Feelings and Opinions Some people can “feel” what is right or wrong Some people can “feel” what is right or wrong Others have opinions on what is right or wrong Others have opinions on what is right or wrong The Problem with this: The Problem with this: If ethics are just a matter of opinion or feelings, than no one can ever do anything that is wrong If ethics are just a matter of opinion or feelings, than no one can ever do anything that is wrong Example 1, pg. 6 Example 1, pg. 6

16. Example 1, Page 6 Harriet comes from a poor family, but Frank’s family is wealthy. Harriet comes from a poor family, but Frank’s family is wealthy. Harriet believes that Frank has more money than he needs. Harriet believes that Frank has more money than he needs. When Frank leaves his backpack unattended, Harriet steals it. When Frank leaves his backpack unattended, Harriet steals it. She defends her actions by saying that she needs the backpack and Frank can buy another one. She defends her actions by saying that she needs the backpack and Frank can buy another one.

17. Example 1, Page 6 Most decisions are made on the basis of an action helps or hurts people who are affected by it which is also known as: Consequence-based decision-making Most decisions are made on the basis of an action helps or hurts people who are affected by it which is also known as: Consequence-based decision-making So….Harriet is wrong for two reasons: So….Harriet is wrong for two reasons: 1. Her actions hurt Frank 2. Set bad example for others

18. How Ethical Decisions are Made The Greatest Good Principle Will the action create the greatest good for the greatest number of people? Will the action create the greatest good for the greatest number of people? Example) Seatbelts Example) Seatbelts Example 2, pg. 7 Example 2, pg. 7 The problem with this…it is often misapplied The problem with this…it is often misapplied

19. Example 2, Page 7 Alame knows that 10 out of her 20 classmates cheated on their last law exam. Alame knows that 10 out of her 20 classmates cheated on their last law exam. Her teacher mistakenly believes that only one innocent student is guilty of cheating. Her teacher mistakenly believes that only one innocent student is guilty of cheating. Alame decides she will keep silent because doing so will ensure the greatest good for the greatest number of people. Alame decides she will keep silent because doing so will ensure the greatest good for the greatest number of people. Do You Know of Any Real-life examples? Do You Know of Any Real-life examples?

20. Example 2, Page 7 Alame has misapplied the greatest good principle. Alame has misapplied the greatest good principle. Failing to identify the 10 cheaters only helps the ten cheaters. Failing to identify the 10 cheaters only helps the ten cheaters. What about the unethical behaviors affect on the rest of the schools population? What about the unethical behaviors affect on the rest of the schools population? Alame is letting an innocent person be punished. Alame is letting an innocent person be punished.

21. Justice Journal- Let’s Debate! Birthday Bonus – You received a popular computer game for your birthday. When your friends found out, they asked you to burn a copy for them. Birthday Bonus – You received a popular computer game for your birthday. When your friends found out, they asked you to burn a copy for them. How would you react? What specifically would you say? How would you react? What specifically would you say? Think about the legality of copying the program, the ethical dilemma you face, and what would you tell your friends. Think about the legality of copying the program, the ethical dilemma you face, and what would you tell your friends.

22. How Ethical Decisions are Made The Golden Rule The Golden Rule “Do unto others as you would have them do unto you” “Do unto others as you would have them do unto you” “Would I want to be treated this way?” “Would I want to be treated this way?” Example 3, pg. 9 Example 3, pg. 9 Steve is the star pitcher for New Hope HS’s varsity baseball team. During a tough inning against the Vikings of St. Joe’s Prep., Steve gets frustrated and throws two pitches at the Viking’s best batter. When the umpire ejects Steve from the game, his coach does not argue. The coach tells Steve, “You were wrong.” If it’s right for you to throw at their batters, then it would be right for their pitchers to throw at our batters. Steve says I wouldn’t want that…. Steve is the star pitcher for New Hope HS’s varsity baseball team. During a tough inning against the Vikings of St. Joe’s Prep., Steve gets frustrated and throws two pitches at the Viking’s best batter. When the umpire ejects Steve from the game, his coach does not argue. The coach tells Steve, “You were wrong.” If it’s right for you to throw at their batters, then it would be right for their pitchers to throw at our batters. Steve says I wouldn’t want that….

23. How Ethical Decisions are Made The Golden Rule The Golden Rule The problem with this: The problem with this: Difficult to fully understand and some abuse the rule by placing their own self interest first Difficult to fully understand and some abuse the rule by placing their own self interest first Example 4-7 pgs. 9 and 10 Example 4-7 pgs. 9 and 10 Stanley was judging a debate held in Social Studies class. He gave Abia a better grade than she deserved because he knew she might be assigned to judge his debate. He wanted her to give him a good grade in return, regardless of whether he deserved it …. Stanley was judging a debate held in Social Studies class. He gave Abia a better grade than she deserved because he knew she might be assigned to judge his debate. He wanted her to give him a good grade in return, regardless of whether he deserved it ….

24. Ethical Character Traits All of the above are easy to follow if the person making the ethical decisions has the necessary ethical character traits All of the above are easy to follow if the person making the ethical decisions has the necessary ethical character traits HONESTY HONESTY JUSTICE JUSTICE COMPASSION COMPASSION INTEGRITY INTEGRITY Figure 1.1 pg. 11 Figure 1.1 pg. 11

25. Terms and Definitions Honesty- Character trait of a person who is open and truthful in dealings with others Honesty- Character trait of a person who is open and truthful in dealings with others

26. Terms and Definitions Justice- Treating people fairly and equally. Justice- Treating people fairly and equally.

27. Terms and Definitions Compassion- When someone is sympathetic to the difficulties of others and wants to help alleviate their problems Compassion- When someone is sympathetic to the difficulties of others and wants to help alleviate their problems Empathy- Means putting yourself in another person’s position Empathy- Means putting yourself in another person’s position

28. Terms and Definitions Integrity- When a person is willing to do the right thing, regardless of the personal consequences. Integrity- When a person is willing to do the right thing, regardless of the personal consequences.

29. Terms and Definitions Law- is the system of rules of conduct established by the government of a society to maintain stability and justice. Law- is the system of rules of conduct established by the government of a society to maintain stability and justice.

30. Why is Law Necessary? Ethics tell us what we ought to do Ethics tell us what we ought to do Law is needed because people do not always do what they should Law is needed because people do not always do what they should Law cannot always make people do what is right. Law cannot always make people do what is right. However, law does have the power to punish people for doing things that are wrong. However, law does have the power to punish people for doing things that are wrong.

31. Example 8, pg. 12 World Cars, Inc. advertises its cars by saying “They’re the best on the market!” even though it knows that, while functional and safe, they are quite ordinary. World Cars, Inc. advertises its cars by saying “They’re the best on the market!” even though it knows that, while functional and safe, they are quite ordinary. Best Auto Corp., a competitor, uses a similar slogan, but its cars violates several safety laws and are frequently involved in accidents. Best Auto Corp., a competitor, uses a similar slogan, but its cars violates several safety laws and are frequently involved in accidents. Although, World Cars may seem like their practice is unethical, it is not illegal to claim something subjective. Although, World Cars may seem like their practice is unethical, it is not illegal to claim something subjective. Best Car Corp.’s slogan can be considered dishonest and they can be sued. (Standards of Claims) Best Car Corp.’s slogan can be considered dishonest and they can be sued. (Standards of Claims)

32. Ethical and Legal Conflicts Ethics and law will sometimes conflict Ethics and law will sometimes conflict Example 9, pg. 13 Example 9, pg. 13 Clark is the editor of the Richmond High Herald. Rita tells Clark that another student is selling drugs on campus, but asks Clark not to reveal her identity in his news article or to the police. Clark agrees. Clark is the editor of the Richmond High Herald. Rita tells Clark that another student is selling drugs on campus, but asks Clark not to reveal her identity in his news article or to the police. Clark agrees. When the article is published and the student is arrested, Clark has to testify at the trial. When the article is published and the student is arrested, Clark has to testify at the trial. He refuses to identify his source and is held in contempt of court. He refuses to identify his source and is held in contempt of court.

33. What are the legal issues? Where do our morals and ethics come from? Where do our morals and ethics come from? Should ethical decisions be based on a persons feelings or opinions? Should ethical decisions be based on a persons feelings or opinions? Do you think ethical and legal issues ever conflict? Do you think ethical and legal issues ever conflict? Have ethical standards changed in society? Do laws change? Have ethical standards changed in society? Do laws change?

34. Work Packet

35. Group Activity Group Activity: Ethical Scenarios Case Studies Be prepared to discuss as a group Finish: Vocabulary Chapter 1, Section 1 Finish: Notes from Chapter 1, Section 1 Pre-Read Section 2

36. Partners & Answer Boards!!!

39. Today’s Agenda Discussion – Chapter 1, Section 2 Discussion – Chapter 1, Section 2 Class Work Class Work Review Section 1 Review Section 1

40. Terms and Definitions Law- is the system of rules of conduct established by the government of a society to maintain stability and justice. Law- is the system of rules of conduct established by the government of a society to maintain stability and justice.

41. It’s A Question of Ethics Group Challenge: Group Challenge: What kinds of precautions will you take to keep your customers information confidential? What kinds of precautions will you take to keep your customers information confidential?

42. What You’ll Learn How to….. How to….. Recognize the various parts of the U.S. Constitution Recognize the various parts of the U.S. Constitution Explain the components of common law Explain the components of common law Explain the purposes of statutory law Explain the purposes of statutory law Identify the various ways that court make law Identify the various ways that court make law Government makes administrative regulations Government makes administrative regulations

43. Class Discussion Is it ethical to keep animals in zoos? Is it ethical to keep animals in zoos? Is it ethical to advertise cigarettes to kids? Is it ethical to advertise cigarettes to kids?

44. What do you think?? Can you see how people’s feelings and opinions can cause differences in ethical decisions? Can you see how people’s feelings and opinions can cause differences in ethical decisions? Do you think the law is necessary in the 2 nd ethical question? Do you think the law is necessary in the 2 nd ethical question? Is it ethical to advertise cigarettes to kids?

45. Historical Review of Law 1792-1750 BC- Hammurabi’s Code 1792-1750 BC- Hammurabi’s Code Contained sections on: Contained sections on: Criminal Law, property law, business law, family law, labor law, personal injury law, and others. Criminal Law, property law, business law, family law, labor law, personal injury law, and others. WHY? WHY? The need for law has not changed much over recorded history. The need for law has not changed much over recorded history. People still make the same mistakes People still make the same mistakes People still need protection from the conduct of others. People still need protection from the conduct of others.

46. Sources of Law Law in the U.S. comes from 5 main sources 1. Federal and State Constitutions 2. English Common Law 3. Statutes 4. Court Decisions 5. Administrative Law

47. Constitutional Law Constitution- Document that spells out the principles by which the government operates. Articles, which establish national government Articles I, II, III Articles I, II, III 3 branches of the Federal Government 3 branches of the Federal Government Article IV Article IV Relations among states Relations among states Article V Article V How the constitution can be amended or changed How the constitution can be amended or changed Article VI – Supremacy Clause Article VI – Supremacy Clause The U.S. Constitution and the laws of the U.S. are the Supreme laws of the land The U.S. Constitution and the laws of the U.S. are the Supreme laws of the land Article VII - Ratification Article VII - Ratification

48. Constitutional Law Bill of Rights- Bill of Rights- The first ten (10) Amendments of the Constitution were ratified in 1791. They limit the power of government. The purpose of the Bill of Rights is to protect two (2) kinds of rights: The purpose of the Bill of Rights is to protect two (2) kinds of rights: 1. Rights of individual liberty 2. Rights of persons accused of crimes.

50. Bill of Rights Web Quest- Working with a Partner Web Quest- Working with a Partner Read and Answer the Bill of Rights Questions Read and Answer the Bill of Rights Questions You can review the Internet or the class handout You can review the Internet or the class handout Feel like you know these laws pretty good? Feel like you know these laws pretty good?

51. Partners-Quiz Sign on to my faculty webpage Sign on to my faculty webpage Take Quiz as partners… Take Quiz as partners…

52. State Constitutions Each state has its own constitution Each state has its own constitution It is… It is… More Protective More Protective Narrower (Scope) Narrower (Scope) More Restrictive More Restrictive Who and what religious group help build and shape Pennsylvania?

53. Common Law - *except Louisiana In early English history, judges or Justices traveled around the countryside deciding cases. (Virtually all courts) In early English history, judges or Justices traveled around the countryside deciding cases. (Virtually all courts) They shared their decisions with other judges so that they could all share the same law. They shared their decisions with other judges so that they could all share the same law. These laws were written down to be referred back to in deciding cases. These laws were written down to be referred back to in deciding cases. These first cases were known as precedents. These first cases were known as precedents. Concept Development – “Precedents at home” Concept Development – “Precedents at home”

54. Common Law - *except Louisiana Advantages Advantages Uniform web of laws across the country Uniform web of laws across the country Maintains the ability to adapt to changes in society Maintains the ability to adapt to changes in society Disadvantages Disadvantages Adherence to proper form Adherence to proper form Misplaced period, comma or word would nullify or void the effect of a document Misplaced period, comma or word would nullify or void the effect of a document Limited to only grant a remedy of damages Limited to only grant a remedy of damages

55. Statutory Law Statutes (Legislature=Body of lawmakers) Statutes – (Legislature=Body of lawmakers) Laws passed by the governing body that has been created for the purpose of making laws. Laws passed by the governing body that has been created for the purpose of making laws. Designed to command, prohibit, & declare certain things…. Designed to command, prohibit, & declare certain things…. May not pass laws that conflict with the U.S. Constitution May not pass laws that conflict with the U.S. Constitution Unconstitutional (same applies to state statutes) Unconstitutional (same applies to state statutes) Commerce Clause: Give power to regulate commerce between states Commerce Clause: Give power to regulate commerce between states

56. Unconstitutional Laws Federal and state statutes cannot conflict with the U.S. Constitution, or they may be ruled unconstitutional, or invalid.

57. Court Decisions All courts make legal decisions Courts make law in 3 ways Courts make law in 3 ways 1. Through common law tradition 2. Interpreting statutes 3. Judicial review Meaning: Meaning: 1. Upholding precedents 2. Determining what a pre-existing statute means by clearing up any confusion 3. Determine if they are consistent with the constitution

58. Administrative Law An administrative agency or regulatory agency focuses on individual activities An administrative agency or regulatory agency focuses on individual activities Example: Example: FCC – Federal Communications Commission – regulates broadcasting FCC – Federal Communications Commission – regulates broadcasting

59. Review What You’ve Learned What are the various parts of the U.S. Constitution? What are the various parts of the U.S. Constitution? What are components of common law? What are components of common law? What are the purposes of statutory law? What are the purposes of statutory law? How do courts make law? How do courts make law? Compare common law, statutory law, and agency regulations. Compare common law, statutory law, and agency regulations.

60. Class Work Packet Time

61. Class Work Group Activity: Question #19, page 24 Question #19, page 24 Question # 20, page 24 Question # 20, page 24 Question # 22, page 24 Question # 22, page 24 Full Class Discussion: Full Class Discussion: Real Cases # 23, 24 Real Cases # 23, 24 from page 25 from page 25